Comment on Spotify doesn't make profit from music streaming, despite having over 400M monthly active users, because it pays two-thirds of all its revenue to the rights holders.

EnderMB@lemmy.world ⁨9⁩ ⁨months⁩ ago

Sometimes, I see some of the takes on here, and it’s hardly surprising that the fediverse isn’t particularly popular.

Spotify are somewhat responsible for their current position. They hired too many people, extended into markets they didn’t need to enter, and have a CEO that has blown money in places that didn’t need it. Let’s not forget that Spotify spent $300m on sponsoring FC Barcelona, which could have allowed Spotify to employ ALL of the employees it laid off for 1-2 years. Spotify had no need to give $200m to Joe Rogan, either! That’s half a billion spunked up the wall on decisions that have done nothing for the company but cause grief. Instead, they could have focused their efforts on paying more out to smaller artists that provide the long tail for their service, while also making deals to promote merch and tour dates where possible.

With that being said, if you think that Spotify didn’t play a huge part in making music streaming accessible you’re just being contrarian for no reason. They provided (at the time) a solid application, good connectivity with services like last.fm, and had the social connection sorted from the start. Once phones took off, Spotify removed the need for mp3’s for the majority of people, largely killing iTunes. Spotify was the winner of the music streaming wars.

Frankly, a lot of people were praising Spotify for their “good” severance package, but IMO shareholders should be livid, and should be calling for a new person at the helm.

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